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Food Companies Optimistic For 2013

Author: Brian Todd

The Independent View

Brian Todd

Food Companies Optimistic For 2013   

 February 28, 2013 

 
Working in conjunction with the IGA team, the N.J.-based Food Institute produces The Independent View each weekday, providing IGA Alliance members around the world the industry news they need. Today, Food Institute President Brian Todd shares insights gleaned from a new survey of food and beverage companies.

Good news coming down the pipeline: Food and beverage companies throughout the industry are optimistic about sales in 2013, according to the first annual U.S. Food & Beverage Industry Study released by The Food Institute and WeiserMazars, a tax and advisory firm. This inaugural study relied on real-time input from food product manufacturers and wholesale distribution companies with annual sales ranging from under $10 million to more than $100 million.

Other key findings indicate that attracting new customers and new product activity will be a key factor in sales growth, while about one in 10 respondents noted that they are looking at increasing prices as well.

The full study also explores how these companies cope with rising prices, a tighter credit environment and the emergence of new food companies in the U.S. field. Overall, however, survey participants are confident sales will increase 13 percent compared to 2011 and project their net profits to rise by almost 6 percent.

Personally, I would note that with food prices forecast to move 3 to 4 percent higher this year, it is not surprising that food and beverage companies and grocery retailers share a major concern in the cost of goods. And that is particularly evident given our findings, which show grocery store sales last year in the entire United States yielded less than a 1 percent gain from 2011 after accounting for inflation.

Want to learn more about what the coming year holds for the grocery industry? Download the entire 2012 Food & Beverage Industry Study here.

Thanks,

Brian Todd